Regional growth promising
Good news for Toowoomba, with the December quarter median house price report showing the region is experiencing strong price growth.
THE release of the REIQ’s December quarter median house price report yesterday showed Toowoomba as one of the strongest regions for property price growth in Queensland.
According to the REIQ’s preliminary sales data at the time of writing, the median house price in Toowoomba increased 6.5 per cent to $329,000 during the December quarter and posted equally impressive price growth of 8.5 per cent across the year.
Its numbers of house sales were also up by 11 per cent during the quarter and 13 per cent across the year.
The December quarter data also showed that during the past five years, the Toowoomba region recorded median house price growth of 23.6 per cent – the highest of all major regions in the state across that time frame.
In comparison, Brisbane posted 10.3 per cent across five years and 4.9 per cent during the past year.
While further analysis into the Toowoomba market had not been possible in time for this column, our most recent research found REIQ accredited agents in the region believed sales market activity hadn’t been this good for a number of years.
And, while there may have been some concern regarding the local economy, recent council incentives were ensuring local contractors and developers were working on projects based in the region.
Indeed, according to local agents, the amount of construction work both under proposal and in the pipeline was significant – from residential developments in Glenvale and Cotswold Hills to new shopping centres and sports parks, and critical infrastructure upgrades such as the Toowoomba Range Bypass and Wagner’s Wellcamp Airport.
It was no surprise then that investor activity remained robust during the previous quarter on the back of an already tight rental market.
There also continued to be interest from interstate, particularly from Melbourne, due to its proximity to the Surat Basin.
And, while 12 to 18 months ago the region was not reaping any significant benefits from mining activity, there were expectations that this time around, things would be different.
The Toowoomba rental market also continues to attract investors, predominantly within proximity to the Toowoomba metropolitan area, as matches tenant demand, with one REIQ agency reporting very high numbers of applicants recently.
Toowoomba’s vacancy rate has remained unchanged since September, at 1.3 per cent.
Median weekly rents from the RTA correspondingly continue to record steady growth.